Digital Domain expands its business in VR

Visual effect firm Digital Domain announced today to invest 240 million yuan (US$37.5 million) in Shenzhen-based 3Glasses to venture into the VR headset manufacturing.

The deal, in which Digital Domain takes 60 percent stakes of 3Glasses, is “crucial” in distributing virtual reality contents, the company said. 

Digital Domain, which provides special effects to Hollywood titles like Titanic and Spider Man, aims to tap into the VR market and establish a complete VR ecosystem. 

3Glasses has launched China's first VR headset and first mixed reality (MR) headset, with more than 15 years of experiences in VR/AR technology development. It promised an annual profit of no less than 30 million yuan in 2018 and over 50 million yuan in 2019.

Worldwide sales for augmented reality (AR) and VR headsets will grow to 68.9 million units in 2022 with a five-year compound annual growth rate of 52.5 percent, said the International Data Corporation or IDC, a US-based research firm.